FDI in Highereducation – scope and opportunities. By,Anjana G NairMobno: 8589802310Mail:[email protected] Abstract:It isimportant for foreign investment and experience to flow into the highereducation sector in order to transform the domestic higher educationinstitutions into the world’s top league.Introduction: In1991, the Indian government introduced the economic policy to attract foreigninvestments and since then, it has amended the policy from time to time in varioussectors to sanction increased levels of foreign participation.
As India is a developing country, it requires funding and helpfrom outside. FDI makes an important contribution to boost economic growth and hasexpedited development in a global economy.Educationis an important sector that requires an overall change and development. Whilelisting the best educational institutions in the world, we can notice thatIndia is far behind. In this era of information, nations in the world areendeavoring to expand the reach of education at every level to build aptitudes,skills, interests, and opinions of youth as assets of their nation. So, we needto know the changes transpiring in this sector and endeavor to build technologybased best education system by improving the curriculum with the help offoreign countries. Objectives: · To studyabout the opportunities of FDI in education sector.· Tostudy about the merits, challenges and remedies of FDI in higher educationsector.
Review of literature:· “Despiteallowing 100% FDI in the education sector, there has hardly been any investmentin this sector and the response from foreign investors has been very lukewarm”– Bhumesh Verma · “Therefore,given the limited support, which government can provide to this sector in termsof investment, the private sector needs to play a much larger role,” the reportnoted.” – Business Line (The Hindu) Newspaper report on 2012 Nov 13 Scope & Opportunities:v Improve educational output, i.e. world level educationv Employability increasesv Multinational research universities created and benefited tothe nation v Outflow of money and human resources reduced Challenges:v Foreign control may increase.v Traditional education system changed.v Chance of arising of profit oriented educationalinstitutions.v Foreign Universities not recognized by UGC.v The introduction of FDI is a complex activity.
v Lack of clarity on regulatory framework for academiccollaborations with foreign universities.v There is a chance of objection from the part of foreignersas it is a non-profit sector. They won’t receive any returns from theirinvestments. Suggestions: v We should not allow low grade universities to enter intoIndiav We always think nations welfare and development. Thinknationally, Act Globally v Make children aware of India ‘s tradition and culture fromprimary classes onwards so they will keep it in mind till their deathv We cannot contribute when we swim along the flow. But thosewho swim in the opposite direction of flow, they can bring drastic changes tothe world. Mahatma Gandhi and Nelson Mandela are such persons who swim oppositeto the flow.
v We should open the windows of the world towards our youth. Conclusion:The Government of India has allowed for 100% FDI in theeducational sector under the automatic rule. The introduction of FDI ineducation sector not only mean the establishment of prestigious universitieswith the good architecture, but additionally denotes that trained humanresources should be present in such universities to train the youth in Indiaeffectively.If we did not update our sectors, according to the changesin the world, we will be obsolete soon. So, we must accept the new trends andchanges transpiring globally. Everything has a positive side and a negativeside.
If benefits are more we should neglect small defects or try to surmountit.References:· Indianhigher education sector. opportunities aplenty, growth unlimited! – Deloitte· Amanifesto for change: APJ Abdul Kalam and V.Ponraj· www.google.com